Energy customers turning to gambling to pay bills

Energy customers in deprived areas are turning to gambling to pay off their bills “as a last resort”, a new report has found.

In its third annual Fuel Crisis report, Fuel Bank Foundation said consumers were turning to different coping mechanisms as the cost of living crisis continues to bite.

The charity, which supports prepayment energy meter (PPM) customers, explained that between April and December last year, it issued more than 106,000 fuel vouchers, nearly four times as many as the same period in 2021. These directly helped 225,000 people, including 96,000 children.

As part of its research Fuel Bank commissioned a representative poll of 1,374 adult PPM customers who had received one or more Fuel Bank vouchers in the past year.

It found that in the 12 months prior to receiving help from the charity more than half (59%) had to make the choice between heating or eating at least once a week, with 15% saying daily.

In total 51% of people sacrificed a hot meal more than once a week to save energy, while 44% rationed heating and hot water every day.

Among its key recommendations are calls for the government to begin researching the possible links between fuel poverty and problem gambling after hearing anecdotal evidence suggesting people are turning to gambling to win money to pay their energy and other household bills.

It added: “There may even be a rural dimension to the issue, where people who feel socially isolated are regularly gambling because it makes them feel that they are part of a community.

“To better understand the potential link between fuel poverty and problem gambling, research needs to be conducted by the government and, if a link is proven, it should work with the gambling industry to address the issues.”

The charity forecasts that over the course of two years costs will increase by almost 75% for a PPM customer, rising from £183 a month in January 2022 to a predicted £320 a month in January 2024.

The report’s recommendations include for the Energy Bill Support Scheme (EBSS) to be reinstated when it ends in March, but with a review into who receives the support and the amount they should get.

To tackle the issue of some EBSS vouchers going unclaimed the government must ensure that the value of all unredeemed prepayment EBSS vouchers is automatically credited to the customer’s meter or energy account.

The charity also calls on suppliers to contact their customers annually to check those who are dependent on energy for their health do not have a PPM if they do not want one. It also urges retailers to work together and share examples of best practice to help prevent self-disconnections.

Additionally it reiterates its calls for either an expanded Warm Home Discount scheme or a social tariff targeted at vulnerable households.

Matthew Cole, head of Fuel Bank Foundation, said: “The findings of the report back up what we are seeing at our Fuel Bank Centres across the UK.

“People at the sharp end of the poverty scale are barely keeping their heads above water, with household finances being stretched to breaking point. As a result, they are having to make difficult choices just to survive from one day to the next, and even then, that often isn’t enough to avoid being disconnected.

“The situation is as bad as we have ever seen it and without further financial support for low income and vulnerable households it’s only going to get worse for a lot of people.”